Apr 26 - May 09, 2004

 

FAYSAL ASSET MANAGEMENT LAUNCHES ITS FIRST OPEN ENDED MUTUAL FUND

Faysal Asset Management Limited launched its first open-ended mutual fund "Faysal Balanced Growth Fund", on April 17, 2004 at an impressive ceremony at a local hotel. Mr. Farook Bengali, President & CEO Faysal Bank while introducing the Management Company and the Fund, said that Faysal Asset Management is a joint venture between Faysal Bank a trusted name in commercial & investment banking, AKD Securities a respected name in capital markets, and Islamic Investment Company of the Gulf with international experience in managing Islamic Funds. Faysal Asset Management Company has been formed with an initial paid up capital of Rs. 50 Million with 50%, 30% and 20% participation of IICG, FBL and AKD respectively. FAML, thus, offers

 

 

a combined expertise of its sponsors who are determined to set new standards in fund management and provides a unique opportunity to general public for their investments and savings. Mr. Bengali said that this first open end mutual fund Faysal Balanced Growth Fund had received incredible response from individuals and local corporates with commitments for Pre-IPO investments in FBGF of over Rs. 1.2 Billion in addition to the Seed Capital investment of Rs. 600 million. Mr. Bengali further informed the audience that the three companies plan to launch various other funds including close end fund through Faysal Asset Management Limited to provide profitable investment opportunities to general public.

The Finance Minister, Mr. Shaukat Aziz was the chief guest on the occasion and in his address acknowledged the contribution of Faysal Bank, AKD Securities and IICG in bringing to the market a product that individuals as well as companies can invest in with low risk and high returns. He said that Pakistan's economy was a growing one with scope for development in every sector. Mr. Shaukat Aziz assured government support to fund managers in Pakistan as a sector with great growth potential.

The ceremony was attended by many prominent business personalities and bankers. Mr. Tawfiq Hussain Deputy Governor SBP, Mr. Moin Fuda MD KSE, Mr. Etrat Rizvi Commissioner SECP, leading stock exchange members including Mr. Aqeel Karim Dedhi, Mr. Arif Habib, Mr. Firozudin A. Casim and leading figures of business community including, Mr. Iqbal Alimohamed, Mr. Rafique Dawood, amongst others attended. The ceremony was concluded with distribution of appreciation mementos to the major Seed Capital and Pre-IPO investors of FBGF with Mr. Shaukat Aziz making the presentation. The main contributor to Seed Capital and Pre-IPO investors of FBGF, besides the sponsors, includes Saudi Pak Commercial Bank, The Bank of Punjab, PICIC Group, Lakson Group, National Bank of Pakistan, Metropolitan Bank, PNSC, PSO, Orix Leasing, Pak Kuwait Investment Company, Novartis Pharma, Askari General Insurance, Attock Cement, Security Leasing and BRR International Modaraba besides high networth individuals.

UBL & MCB ARRANGE Rs.2 BILLION WORTH TFC FOR MOBILINK

To commemorate the execution of the PKR 2 billion Privately Placed Term Finance Certificates issue (PPTFC) arranged by United Bank Limited (UBL) and Muslim Commercial Bank Limited (MCB) for Pakistan Mobile Communications Pvt. Ltd a ceremony was held in Karachi.

The ceremony was attended by Mr. Zouhair A. Khaliq the President and CEO Mobilink, Mr. Amar Zafar Khan President UBL and Mr. Aftab Manzoor President MCB.

Mobilink is the market leader in the rapidly growing cellular market of the country and with a subscriber base of 2.4 million users and has a share of more than 64% of the total market.

There exists a considerable future growth potential in the cellular sector as the current cellular density is 2.3% and fixed telephony has not been able to reach far and wide across Pakistan. Mobilink over the last couple of years by making substantial investment in the infrastructure and technology has positioned itself very strongly to further consolidate and maintain its position as leader and provider of premium cellular services.

President Mobilink Zouhair A. Khaliq speaking on the occasion said that Mobilink continues to strengthen its position as the leading cellular company of Pakistan and in the last ten months particularly has spent more than US$ 200 million in expanding capacity, coverage and ability to serve our customers across the nation. He thanked the arrangers and the advisors UBL & MCB for consistently supporting the company in its investment plans.

FAYSA1 BANK JOINS 1 LINK & DEBIT CARD NETWORK

Faysal Bank recently signed an agreement to join the 1 Link ATM Switch Network, increasing the number of 1 Link Switch member banks to fourteen. Today the 1 Link Switch has 14 member banks, with a combined strength of 365 online ATMs in 25 cities. By the end of 2004, the 1 Link Switch ATM strength is expected to increase to over 400 ATMs.

At the same time, Faysal Bank also signed an agreement with ORIX Leasing Pakistan and ABN AMRO to join the 1 Link Debit Card Network. Faysal Bank customers will be able to use their Debit Cards at all Point of Sale Terminals set up by ORIX across Pakistan.

SLOWDOWN IN INDIAN APPAREL EXPORTS TO US 'WORRYING'

Apparel exports to the US and Canada have slowed down drastically in the last few months a worrying trend, according to Mr Amit Goyal, President, Confederation of Indian Exporters (CIAe).

Recent figures reveal that apparel exports to the US fell 23.63 per cent to Rs 868 crore in January 2004 from Rs 1,036 crore in January 2003. In February 2004, it fell 19.50 per cent to Rs 845 crore from Rs 1,050 crore in the previous corresponding period. Similarly, exports to Canada fell 21 per cent to Rs 85 crore (Rs 107 crore) in January 2004 and 25 per cent in February 2004 to Rs 83 crore (Rs 110 crore). However, apparel exports to the European Union rose 25.31 per cent to Rs 1,848 crore in January 2004 over Rs 1,380 crore in January 2003. For February 2004, it was higher by 22 per cent at Rs 1,279 crore over Rs 1,050 crore previously. According to the CIAe, the data is significant as exports to the EU have been increasing steadily while exports to the US and Canada are declining. Some of the reasons are the weakening of the dollar and a large number of bulk orders being shifted to countries such as Bangladesh, Sri Lanka, Pakistan and China. According to a press release, the price difference between the Indian manufacturer and that of neighbouring countries in some commodities was almost 20 per cent.

 

 

CACCI AND ICCI STRESSED TO ENHANCE THE BILATERAL TRADE IN REGION

Confideration of Asia Pacific Chamber of Commerce & Industry (CACCI) Chairman K.K Modi recently agreed with ICCI President Zubair Ahmed Malik's call to the Governments of Pakistan and India to resolve all outstanding political issues in order to pave way for long lasting economic cooperation between the two neighboring countries. Because in the region 40% people are living in low standard and most of budget is spending at the defence. Now the things are changing, people want to enhance bilateral trade for the prospects of the region.

Addressing the ICCI office-bearers and other members K.K Modi who is leading a 15-member delegation of the CACCI, said the two governments must ensure atmosphere conducive for resolving simmering political issues and removing hurdles impending bilateral trade.

He said the aim of CACCI was to promote economic cooperation and the Asia Pacific states. He invited the ICCI members to attend 68th council meeting of CACCI being held in Combodia in May 18 and 19 and business congress to be held in New Delhi in December. Moreover the CACCI wants to see his Vice President from Pakistan because 22 countries businessmen and the members of CACCI and Pakistan can play vital role in CACCI.

P&G INCREASES THIRD QUARTER AND FISCAL YEAR EARNINGS

The Procter & Gamble Company (NYSE:PG) recently announced that earnings per share for the January through March 2004 quarter as well as the fiscal year are expected to exceed current consensus estimates by $0.01 to $0.02. The increased earnings are being driven by continued strong organic volume growth.

The company also announced that its board of directors has approved a two-for-one stock split in the form of a 100% stock dividend to shareholders of record on May 21, 2004. Procter & Gamble shareholders will receive one additional share for each share held on that date. This move does not change the proportionate interest a shareholder maintains in the company.

In a separate action, the board declared an increase in the annual rate of its common stock and Series A ESOP Convertible Preferred Stock dividend from $1.82 to $2.00 per share. In line with this action, the P&G board of directors declared a quarterly dividend of $0.50 per share (pre-split), up from $0.455 per share, to shareholders. Following the split, the annual dividend on the company's common stock will be $1.00 per share, or $0.25 on a quarterly basis.

P&G has increased its dividend in 48 consecutive fiscal years. This is the second dividend increase this fiscal year, resulting in an annualized increase of 13.2 percent. The company has been paying dividends without interruption since its incorporation in 1890.

"P&G's strong results, reflecting balanced, consistent growth, have given the Board the confidence to raise the dividend for the second time this fiscal year, and to split the stock," said A.G. Lafley, P&G's chairman, president and chief executive.

For the January through March quarter, organic volume growth is expected to be about 10 percent, on top of a strong base period of eight percent organic volume growth. The volume growth is broad-scale across business units and geographies, and continues to be led by health care, beauty care, fabric and home care, and developing markets.

Foreign exchange is expected to increase sales by three to four percent, primarily due to the strength of the euro, Canadian dollar and British pound. Acquisitions (primarily Wella) are expected to add seven to nine percentage points to sales growth. Total sales for the quarter are expected to increase about 20 percent.

PRIME BANK DEPOSIT PRODUCTS

Provisional profit rates effective from January 01, 2004

PRIMAX CLASSIC

(Profit is paid Monthly or daily product basis)

TIERS

PROVISIONAL RATES

ERR*

Rs. 1to Rs. 99,999

0.25%

 

Rs. 100,000 to Rs. 999,999

2.25%

2.28%

Rs. 1,000,000 to Rs. 9,999,999

2.50%

2.53%

Rs. 10,000,000 and above

3.00%

3.05%

Primax Anchor

(Profit is paid monthly on minimum balance)

TIERS

PROVISIONAL RATES

ERR*

Rs. 1 to Rs. 499,999

0.25%

 

Rs. 5,00,000 to Rs. 4,999,999

2.50%

2.53%

Rs. 5,000,000 to Rs. 24,999,999

2.75%

2.79%

Rs. 25,000,000 to Rs. 49,999,999

3.00%

3.05%

Rs. 50,000,000 and above

3.25%

3.30%

Primax Exclusive

Specialized term deposit scheme (Profit is paid on maturity)

TIERS

3 MONTHS

6 MONTHS

Rs. 25,000 to Rs. 99,999

3.00%

3.25%

Rs. 100,000 to Rs. 999,999

3.25%

3.50%

Rs. 1,000,000 to Rs. 4,999,999

3.50%

3.75%

Rs. 5,000,000 to Rs. 499,999,999

3.75%

4.00%

Rs. 500,000,000 and above

3.75%

4.75%

SPECIAL NOTICE DEPOSITS

Minimum Balance Rs. 5,000 (Profit is paid on mautirty)

7 to 29 Days Notice

1.00%

 

30 Days Notice

2.50%

 

OTHER TERM DEPOSITS

Minimum Balance Rs. 5,000 (Profit is paid on maturity)

1 Month

2.00%

 

1 Year

4.25%

 

5 Years

4.25%

 

SAVING ACCOUNTS

(Profit paid six monthly on minimum balance of the month)

Rs. 1 to 4,999

0.25%

 

Rs. 5,000 and above

3.00%

 

 

 

*Effective Rate of Return
All the profit rates quotd above are provisional and effective from Jan. 01, 2004.
The above rates are subject to change from time to time as per rules and regulations of the bank.